3. Describe at least 3 nonprice competition strategies a company could use to convince customers that its product is better than other similar products. Why would those strategies matter to customers? (3-6 sentences. 3.0 points)…
3. Describe at least 3 nonprice competition strategies a company could use to convince customers that its product is better than other similar products. Why would those strategies matter to customers? Packaging, advertising and labels on a product will give the customer all the information it needs to know about the product and can convince them to buy it.…
Competition is generally regarded as being positive, bringing benefits in particular to customers. The advantages of competition are based on the fact that, in order to gain market share, firms need to offer the cheapest or the best quality products to customers. This requires them to operate as efficiently as possible, in a cost effective way while at the same time improving the quality of products and services as much as possible. However, competition also has some negative. Where competition is based solely on price, product quality might be sacrificed because resources that are devoted to competing with other firms, such as the huge amounts spent on advertising and packaging, could be directed to producing cheaper or better products. Also, competition between firms means that, inevitably, some businesses will be forced out of the market, with the economic and human consequences of redundancy and unemployment. Finally, the competitive process tends to mean that successful established businesses gradually take over, for example Nestle…
The objective of this project is to give students an opportunity to think about and apply the marketing concepts covered in this course in comparing the marketing activities of two competing businesses. This research paper should be written in paragraph form, double spaced, in a 12 font with the preset (normal) margins. Please use the headings and subheadings listed below (1. History, 2.Industry Overview, etc.) to make your paper flow well. Topics to be addressed in this paper should include (but are not limited to) the following:…
3. Describe at least 3 nonprice competition strategies a company could use to convince customers that its product is better than other similar products. Why would those strategies matter to customers? (3-6 sentences. 3.0 points)…
The possibility of new competition in the market place is limited by two major problems, the brand and distribution. Remembering that these are higher market consumers, where by cheap alternatives are not necessarily desired, then the key element is the…
According to the 5-forces model, each industry’s profitability can be assessed considering the five forces that influence the market – The rivalry among existing competitors, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, and threat of substitute products or services. Considering the rivalry among existing competitors, the rivalry is very intense. Among national concentrate producers, Coke and Pepsi claimed a combined 72% of the U.S. CSD market’s sales volume. The Cola war has begun in 1950s and the competition is still ongoing. Also, the competitions in other sectors of drinks and between small concentrate producers were harsh.…
Various organizations around the world have a lot of share in the market. These organizations try to make sure that, they work in such a manner that, they have a competitive advantage in the market. Here, in the present paper, the discussion shall include two organizations. The first organization is PepsiCo and the second organization considered here is Coca Cola. These organizations are in the beverage industry and also provide various kinds of food products to the customers.…
Brasilian Jiu Jitsu or just Jiu Jitsu is a grappeling orientated martial art. It was created in Brazil in the 1920's when Japanese martial artist Mitsuyo Maeda who travelled all over the world promoting Judo as his master Jigoro Kano from the Kodokan School of martial arts intended.…
In business, there is considered to be a competitive balance between companies that are unique in their industry. There are industry segments that are dominated by one or two companies such as the satellite television market. Other industries have multiple business of varying size that are in direct competition for market share, which is commonly known as market structure. The author of this paper will focus on Kroger Company, which is a grocery/pharmacy that is widely known in the southern region of the nation. Kroger would come under the term of a monopolistic competition within the grocery industry.…
There were fierce competitions among the producers that have scale and scope of operations which were similar to each other. For instance, the Pepsi Co. and Coca Cola companies have developed the strategy and infrastructure, which are hard for the local sellers to complete with them. However, there were still many producers including new entrants that try to access the market and compete seriously with low price and differentiation- strategies among rivals.…
The competition within the $74 billion carbonated soft drink (CSD) industry has been remarkable ever since Coca-Cola was formulated in 1886, and further intensified when Pepsi was introduced in 1893. Ever since then, the CSD industry has been dominated by these two companies, with Coke taking the lead in the early stage, followed by Pepsi doubled its market share between 1950 and 1970 by offering its concentrate at a lower price than its competitor. The CSD industry has been profitable historically due to numerous reasons. Firstly, in the world’s largest market for CSD products, consumption had been growing at a steady rate of 3% annually from 1970 to 2000 in the U.S., marking a high growth stage in the industry life cycle (Appendix B). This allowed both Coke and Pepsi (C&P) to achieve annual sales growth of around 10%, while competing head-to-head against each other and other smaller CSD producers. Competition between C&P reinforced their brand image, as the increase in marketing efforts could be transferred into profit and sales growth when the overall demand was increasing in a growing industry. However, the increasing industry volume was largely obtained by C&P, leaving other smaller firms vulnerable with stagnated growth opportunity. Secondly, according to Porter’s Five Forces analysis in Appendix A, high barrier for new entrants, low bargaining power of suppliers of both concentrate producers and bottlers, moderate buyer’s bargaining power and low degree of threats of substitutes prior to 2000, have been favorable to the high profitability and growth of the CSD industry. In terms of concentrate producers, the manufacture process involves little fixed costs and capital investments. This ensures high level of gross margin for them and frees up funds for marketing related expenditures. As the industry became more consolidated, large firms such as C&P gained pricing power over bottlers through master price contracts. For bottlers, even though heavy capital…
In this paper, we will discuss the four market structures of Monopoly, Oligopoly, Monopolistic Competition and Pure Competition. We have identified four companies that operate in each of these market structures: Salt River Project, The Coca Cola Company, Russ 's Market, and Columbia House. In each market structure we will describe the pricing and non-pricing strategies of the companies operating in that market. We will also examine Quasar, a notebook computer company. They entered the market with a new product and we will explain the progress from one market segment to the next as the lifecycle of the product changes and the number of suppliers and consumers also that changed along with it.…
An industry can be defined as a group of companies offering products that are closely substituting for each other in order to satisfy customers. Competitive advantage can be defined as when a firm sustains profit which exceeds the company’s average; it automatically possesses competitive advantage over rivals. The business strategy for most companies is to achieve a sustainable competitive advantage. This essay aims to discuss why firms must choose between types of competitive advantages using an industrial example.…
A company may achieve competitive advantages and strengthen its positions at the expense of: ensuring lower costs on production and marketing of products. Low costs mean the company's ability to elaborate, produce and sell goods with comparative characteristic features but with lower costs than competitors. A company gets additional profit if it undercuts its products in a market; ensuring that product stays irreplaceable with the help of differentiation. Differentiation means the company's ability to provide its customer with the product of great value, in other words, with the product of high use value. Differentiation gives the possibility to establish higher prices that brings higher profit. Besides, a company has a choice what market to compete in: the entire market or some its part. This choice can be done using the relation between the market share and company's profitability suggested by Porter.…